Who qualifies as a 'DMA Member' or 'Member' under the Bojangles Advertising Expense Sharing Agreement?

According to Bojangles's 2025 Franchise Disclosure Document, a 'DMA Member' or 'Member' within the context of the Advertising Expense Sharing Agreement is defined as a franchisee owning a restaurant within a designated market area (DMA) who has entered into or adopted the agreement. This also includes each Initial Franchisee who may have elected to become a member of a particular DMA, and Bojangles itself for each DMA in which it owns a restaurant. The DMA is a geographical area designated as a television marketing designated market area by the Nielsen Ratings Company. Any changes to these geographical areas by Nielsen after the agreement's execution are not considered until the next Transfer Date. The Transfer Date is June 1 of each year.

This definition is important for prospective franchisees as it clarifies who is obligated to participate in and contribute to cooperative advertising efforts within a specific DMA. By becoming a DMA member, franchisees agree to cooperate in advertising, particularly through television media, to increase exposure and profitability. This cooperative advertising is intended to benefit all members equitably.

However, the agreement also specifies conditions under which Express Units (smaller, non-traditional Bojangles locations) may have different membership terms. If a DMA contains both Express Units and standard units, Bojangles may require Express Units to contribute to the DMA but grant them only one-half vote for each Express Unit. In lieu of membership, Bojangles may require Express Units to pay up to two percent of gross sales to offset spending by Bojangles in the DMA, without granting Express Units voting rights. This could impact the voting power and financial obligations of Express Unit franchisees compared to standard franchisees.

Franchisees should also be aware that some may have executed other versions of the Advertising Expense Sharing Agreement with potentially different terms, including different rates of contribution. Therefore, it is crucial for prospective franchisees to understand which version of the agreement applies to them and how it may differ from the standard terms. Franchisees are responsible for knowing the terms of the agreement they sign, acknowledging that other members' performance may be governed by different forms of the agreement.